LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
 
May 20, 2011

TO:
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
 
FROM:
John S O'Brien, Director, Legislative Budget Board
 
IN RE:
SB1927 by Zaffirini (Relating to the authority of certain volunteer firefighter and emergency services organizations to hold tax-free sales or auctions.), As Engrossed

No significant fiscal implication to the State is anticipated.

The bill would amend Chapter 151 of the Tax Code, regarding the sales and use tax and the authority of certain volunteer firefighter and emergency services organizations to hold tax-free sales or auctions.
 
The bill would add new Subsection (c-1) to Section 151.310 to provide that an organization exempt under Section 151.310(a)(4) may hold 10 tax-free sales or auctions during a calendar year, each not to continue for more than 72 hours.  Items purchased tax-free under this subsection would not be subject to use tax under Subchapter D of this chapter until the item is resold or transferred.  This new subsection would expire September 1, 2014.
 
The bill would take effect immediately if it receives the requisite two-thirds votes in each house.  Otherwise it would take effect September 1, 2011.       

Comptroller tax data indicate that fiscal 2010 state sales tax remittances from volunteer fire and volunteer fire/EMS organizations exempt under Section 151.310(a)(4) were not sufficient to represent a significant reduction in sales tax revenues if some fraction of those sales become tax-free due to the bill's provisions.  


Local Government Impact

No significant fiscal implication to units of local government is anticipated.


Source Agencies:
LBB Staff:
JOB, KK